For more than four decades, Nigeria has struggled with a power supply crisis that has crippled national development, burdened households and businesses, and undermined the quality of life of millions of citizens. Despite massive investments, repeated reforms, and numerous committees charged with “fixing” the sector, the country still cannot reliably generate, transmit, or distribute even 6,000 megawatts of electricity for a population estimated at more than 200 million people.
From the 1980s to the present day, the story has been one of failure, abandoned projects, corruption, and policy missteps. Unfortunately, the consequences of these failures are not abstract—they are painfully real, reflected in high business mortality, rising poverty, and the suffocating daily cost of self-generation through diesel and petrol.
Today, as Nigeria moves into a new phase of constitutional and regulatory reform, one that allows states and private entities to generate and distribute electricity, it is time to confront the real reason the sector collapsed: monopoly.
A History of Reform without Results
Until 1999, Nigeria’s power infrastructure lay in ruins—abandoned for more than two decades. When the Fourth Republic began under President Olusegun Obasanjo, the government finally recognized the urgency and set up a presidential panel to reform the electricity sector. What followed was a wave of investments running into billions of dollars.
NEPA was renamed the Power Holding Company of Nigeria (PHCN), and the privatization process began. PHCN was unbundled into:
- Generation Companies (GENCOs)
- Distribution Companies (DISCOs)
- The Transmission Company of Nigeria (TCN)
- The National Electricity Regulatory Commission (NERC)
The intention was noble. The results, however, were catastrophic.
Twenty-five years and more than $30 billion later, Nigeria still cannot boast 10,000 MW of generation capacity or supply 6,000 MW consistently. The promise of privatization was never realized because the reforms did not address the root cause of the problem—the monopolistic structure inherited by the DISCOs.
Each DISCO enjoys near-total control over its distribution zone. Without competition, they have no incentive to improve infrastructure, invest in technology, or provide quality service. Nigerians have no alternative provider—and therefore no real consumer power.
Monopoly Is the Real Cancer of the Power Sector
Corruption, yes. Bureaucracy, yes. Abandoned projects, yes.
But underneath all these issues lies the most dangerous structural flaw: lack of competition.
Because DISCOs control their zones exclusively:
- They have no reason to improve service delivery.
- They rarely invest in expanding or maintaining infrastructure.
- They prefer estimated billing to prepaid meters because it yields more profit.
- Consumers are trapped—whether power is provided or not, they must pay.
- Innovation is discouraged.
- Accountability is non-existent.
This monopoly is why Nigeria spends billions on electricity every year yet remains in darkness.
The Metering Scandal
Perhaps the most blatant example of monopoly abuse is the difficulty Nigerians face in obtaining prepaid meters. Some DISCOs benefit from the chaos:
- estimated billing is imposed on customers
- households pay for energy they do not consume
- DISCOs enjoy guaranteed income even without improving supply
This is, in every sense, a fraudulent system, and no country can develop with such practices embedded in its energy infrastructure.
Why We Must Revisit the Debate
Electricity is the lifeblood of any modern society. No sector—from manufacturing to transportation, from digital technology to agriculture—can grow without reliable power. In Nigeria today:
- Businesses spend up to 20% of operating costs on diesel and petrol.
- Households spend billions of naira annually on self-generation.
- Factories shut down or relocate due to high energy costs.
- Youth unemployment worsens because industries cannot expand.
It is for these reasons that this issue must be revisited, reaffirmed, and placed at the center of national debate. Addressing the power crisis is no longer about comfort—it is about national survival.
The Way Forward: Breaking the Monopoly and Restructuring the Sector
To finally resolve the power crisis, Nigeria must pursue bold reforms that create competition, accountability, and efficiency.
Below are key recommendations to ensure a functional and sustainable electricity industry:
- Legislate Mandatory Competition in Every Distribution Zone
No DISCO should hold exclusive rights in any region.
Just as multiple telecom companies operate nationwide, multiple power distributors must be allowed to operate side by side.
When consumers have options:
- service improves
- tariffs become competitive
- investments increase
- inefficiency is punished
- Criminalize Vandalism and Sabotage with Severe Penalties
A minimum of 20 years imprisonment must apply to anyone who tampers with power infrastructure—cables, transformers, substations, gas pipelines, or prepaid meters.
Electricity is a national security asset; its sabotage should carry heavy consequences.
- Enforce Strict Penalties for Electricity Theft
Any employee of a utility company—or member of the public—who bypasses meters, alters connections, or engages in energy theft must face:
- imprisonment
- loss of pension (for employees)
- heavy fines
This applies equally to the rich and poor; theft is theft.
- Mandatory Meter Provision within 30 Days
After a customer applies for a prepaid meter, the law must compel DISCOs to install one within 30 days.
No excuses. No delays. No extortion.
- Strengthen Licensing and Performance Regulations
NERC must:
- revoke licenses of non-performing companies
- enforce service-level agreements
- establish clearer thresholds for generation, transmission, and distribution efficiency
Only performers should remain in the sector.
- Remove Government Ownership from the Power Sector
Government must withdraw from ownership and focus solely on:
- regulation
- policy
- enforcement
Private-sector investment—not government bureaucracy—should drive power delivery.
- Secure Gas Supply for Power Plants
Gas companies must be legally mandated to provide uninterrupted supply to gas-powered plants, with clear pricing and contractual obligations enforced by NERC.
Without consistent gas supply, there will be no consistent electricity.
Power and National Culture: The Hidden Connection
Beyond policy and politics, Nigeria must address the cultural environment that allows the power sector to remain dysfunctional. A society that tolerates:
- bribery
- abandonment of duty
- substandard materials
- sabotage
- theft
- lack of accountability
Cannot enjoy reliable electricity.
Nigeria must undergo cultural and ethical transformation—a national rejection of the “E no concern me,” “Na so we see am,” or the notorious excuse, “Abeg, e don happen.”
Restitution, accountability, and justice must replace impunity.
The Urgent National Demand for 24/7 Power
Nigeria cannot continue generating less power than South Africa or Egypt, countries with far smaller populations. A nation of 200 million people deserves, indeed requires, constant electricity.
If Nigeria:
- breaks the DISCO monopoly
- enforces competition
- strengthens regulation
- eliminates corruption
- guarantees gas supply
- and protects infrastructure
Then 24/7 nationwide power by 2026 is not only possible—it is achievable.
The time for prayer and wishful thinking is over.
The time for action, enforcement, accountability, and competition is now.
CONCLUSION
Nigeria’s electricity crisis persists not because solutions do not exist but because vested interests, monopoly structures, and cultural decay continue to undermine reform efforts. The path to national prosperity begins with breaking the monopoly, enforcing the rule of law, and opening the sector to genuine competition.
Only then will investments yield returns.
Only then will service delivery improve.
Only then will Nigeria unlock the economic potential of its people and its industries.
The journey to 24/7 electricity starts with one decision: end monopoly and embrace competition.